LIONESS WEEKENDER COVER STORY
Hirsch’s is a truly South African family business and was founded 41 years ago by Margaret Hirsch and her husband Allan. Today, it is the largest independently owned Appliance and Electronics retail outlet in South Africa - Margaret now has the role of Executive Director of the company, Allan is the Chairman, son Richard is CEO and daughter Luci is Brand Manager. Lionesses of Africa chatted to Margaret this month to hear her shared insights during this Covid-19 pandemic, and its impact on her personally and on the business. She opens up very honestly about her personal experiences, and also her people centric approach to business.
As a woman entrepreneur who has decades of business experience, how have you coped on a personal level with the challenges of the Covid-19 pandemic?
We were very fortunate because when we realized that the pandemic was going to hit, we moved straight to our farm which is in the Midlands in Kwa-Zulu Natal. So we were away from the crowd completely and we had enough groceries to last us a long time. So we didn’t need to go to the shops. For the first couple of days we thought we were on like a holiday, and then we realized we have to start working because things were still happening although the stores were closed. We had massive accounts to pay, as well as a huge salary bill, and that was our biggest concern. We just had to work out ways to cope with that. So luckily, from the time of my first salary, I have always saved 10% of my salary and I have always invested 10% of my salary. So we had invested heavily in property as well and we were very fortunate to have access bonds. When our suppliers came to us demanding money, we had to get that liquid money very quickly. So thank goodness for our access bonds and the money that we had invested in property that we could drawn on. It was very stressful but we were secure in the fact that everything would be fine and for three weeks we were fine. Then when the extension to the lockdown came, that’s when we really started to stress because we didn’t know how long the extension would be for. We weren’t sure that the UIF would pay out, we had a huge staff, many of whom had been with us for over 30 years, and we had to provide them with salaries. So that was really a stressful time and I am just so grateful that we managed to get through it as we did.
As a major independent retailer in Southern Africa, please share your experiences of how you have had to deal with the lockdown due to the pandemic, and how has that affected the way you have traditionally done business. Have you had to pivot your business model? What does that retail model now look like? Will you be doing business very differently from this point onwards? How are you building business resilience in Hirsch’s to keep it sustainable and growing into the future?
We still continue to look after our clients and our staff. That I think has been the secret of our success all along. We had to pivot in the beginning because all we were allowed to sell was heaters. So we got in and even though it wasn’t cold we sold heaters like there was no tomorrow. Then we could sell cooking appliances. So we decided to tell everybody that they had to cook their own food. No more Mr Delivery and they had to get out and just cook. We then got into cooking, and as time went on and the restrictions were limited, we were able to sell televisions and fridges. We found for us that people were in their homes much more than they have ever been before. I used myself as an example where I had never used my washing machine and found that it was terrible. So I got myself a new washing machine. I had never used my iron or my ironing board and they were dreadful. So I got myself new ones of those. Luckily I had a very good microwave and oven so I carried on with those, but most of the things that I had in my home were not as practical for me as they had been for my domestic worker. So I changed a lot of things. I got an electric pressure cooker. I got an air fryer, and as I did all that I blogged about it and put it out there online, and I found that my clients were following me and doing the same thing.
The biggest change to our business was our online sales dept. We always had been online but suddenly our sales were 500% up - if you remember between lockdown level 4 and level 3 they opened up a section where you could buy online. So our online has taken off like you cannot believe. Although people say everything is going online, I think South Africans still like to see, touch and feel. So we looked at our stores, we looked at closing sections of them, we looked at renting out sections of them but at the end of the day we decided to keep them as they are because they are very spacious, so customers will feel confident to shop in store and won’t be on top of somebody else as you would in a small store. Clients can park right at the door so they don’t have to walk through a mall, etc, to get into our stores. We have social distancing, we have big counters where you make your payment, so there is social distancing there as well. My stores have always been very clean looking, the floors are white, the walls are white and you can actually see that everything is clean and shining and sanitized. I have cleaning ladies continually cleaning the toilets, stairs, floors, etc. Everything is sanitized at least ten times a day. We also went to the added expense of getting all our stores fumigated and sprayed to make sure that there was no germs anywhere at all. We are much more conscious now of staff wearing masks, etc, but we found that we just stuck to our knitting and we just look after every customer as if they are the only customer and that’s really worked.
At the beginning of the year we had a huge management change where we handed over to a younger team and they have come through this absolutely smiling because our social media is fabulous. Our online presence is fantastic and customers have seen this and have gone on-board and just run with us. We are very confident that Hirschs will grow into the future. Where with some of the other online people you order today and get your goods in ten or fourteen day’s time, we still deliver the same day. You can still phone me and I will still help in regards to repairs, service, or whatever a client needs. You cant get that from an online platform. Also if you have a problem you can ask a question. Just today I had a guy who called me to say his stove wouldn’t work. The first thing I asked him was if he put the trip switch up. He went and had a look and put it up and it worked perfectly. You couldn’t do this if you bought online. So I think in South Africa, although online has taken off big time, people still like to have a contact person to deal with.
Any business that employs lots of people understands just how tough this pandemic and the resulting lockdown has been on their people - you have a lot of employees at Hirschs, how have you dealt with the challenges affecting your own workforce, and how have you kept everyone engaged in the brand and the business during this stressful time?
In regards to our workforce, through the initial stages of lockdown we put everybody onto whatsapp groups. We, as the management team, dealt with our managers. They as managers dealt with their teams, and we were all completely transparent from day one. They knew exactly where they stood and how we were thinking and what we were doing. They knew that they would get their salaries. They knew that we would look after them in all aspects. They knew that we would look after them health wise. We worked in three teams. So we had one team in today, one team in tomorrow and one team on reserve, so that they knew if one team got sick the second team will take over and then the third team will come in as a backup. We also put the people who had chronic illnesses like diabetes, asthma, heart problems, etc, onto the third team so that they knew that they would come in last and they would be looked after for the longest time. The first and second team worked alternate days and it actually worked out so much better than we ever thought. They would come in energized and work like crazy knowing that they were going to be off the second day and then the other team will come in. The way we handled it was absolutely perfect and that also gave them time to realize that we were still in business, that they would still have a job, but they were also having much more time with their families than they ever had.
Both Hirsch’s and you personally understand the power of social media to connect with customers - how have you leveraged this to maintain that brand connection, and do business, during this tough time?
In regards to social media, we are so blessed to have the most phenomenal team that work together as one cohesive team which goes from online buying section through to the comments section, through to the help section. We have an assistant on almost 24/7. We answer phones and enquiries 24/7. We have an online chat 24/7 and we are able to service our customers, from the minute the government allowed us to get out there. We got out, we fixed fridges, stoves, washing machines etc. In the beginning we were only able to deliver washing machines in exceptional cases. We used social media to keep our customers abreast of what was happening at Hirschs and what we could and couldn’t do. We stayed in touch with them right through ever interaction from beginning to end on whatsapp, Facebook, LinkedIn, Twitter and any platform we could find. We were using everything to stay in touch with our customers.
What lessons have you learned about your resilience during this time, and also about your business and the retail sector as a whole?
The nice thing about being old is that you know you are resilient and you have been through it before. This is the fourth recession that I have been through. I have lost my money twice and made it all back again. So I think that a lot of people just gave up. I am a landlord as well and a lot of my tenants who own shops just gave up. I was the one saying to them don’t give up, keep going. It will come right. I have a man who has a gym who rents a space from me. He called me to say he is going to close down. I said to him don’t close down and I will hold your rent for this time and asked him to wait until he can get back again. I suggested he go online with his training and do something. Then I had a hairdresser who rented space from me and she just gave up straight away. So it depends on the people but it just teaches you that the resilient people will come out at the end but some people just give up. You know my nature, I will never ever give up.
What advice would you like to share with other women entrepreneurs from the retail sector who are now getting ready to try and kickstart their businesses again post lockdown?
There is only one way to do it. It’s like eating an elephant, you can only do it one bite at a time. You are not going to go in and nobody is going to wave a magic wand that you are going to get back to how you were. I think the biggest lesson we learned out of this is that there is no normal. The new normal is not the old normal and the new normal changes daily. So that’s the first thing we have to say to them. Secondly, that you can get out of this, you will get out of it, and it’s going to be up to you. It all comes down to your mental attitude, how strong you are, how much courage you can draw on. I always say to them, fear brings lack and poverty. Courage brings strength, resilience and wealth. This is what we need. We just need to draw on the courage inside us and know that we just have to move forward. One little step at a time. What I tell my staff to do is look five years into the future. Five years in the future, where do you want to be? What do you want your business to look like and what do you want to be doing? I think if you could look five years into the future and work backwards to today, it will set you the steps that you need to take to get there. You just need to follow those steps, and if you follow those steps you will get to where you want to be in the end.
As Rumi said, “Just keep walking constantly in the direction of your dreams”. They just have to keep going, be resilient, keep trying, cut the cost to the bone. We cut all our costs to the bone and we found that we were paying for so many things that we didn’t need. We sold all the stuff that we didn’t need. We had a lot of discontinued stock that we sold below cost just to get rid of it and turn into cash. We are just so thrilled and so grateful that we have come through this pandemic doing better than we ever did before. I think anybody who puts their mind to this will come out of this. They will survive and thrive through Covid-19.
More about Margaret and the Hirsch’s story
Margaret Hirsch - building a legacy and empowering women throughout Southern Africa.
Hirsch’s is a truly South African family business and was founded 41 years ago. It is the largest independently owned Appliance and Electronics retail outlet in South Africa. Margaret is Executive Director of the company, Allan is the Chairman, son Richard is CEO and daughter Luci is Brand Manager.
Hirsch’s was not created overnight, as when Margaret lost her job as a receptionist and was pregnant with her first child, she and Allan needed to plan for survival. Allan had been working as a refrigeration repairman, but this would not have been sufficient to provide for the family. Allan suggested they start their own business. It started off as a refrigeration and air conditioning repairs shop and eventually they were opening one store after the other. Today you will find Hirsch’s stores scattered around the country. In Gauteng (11), KwaZulu-Natal (6) and Western Cape (2), as well as the Samsung stores in Mall of Africa, Sandton, Rosebank, Umhlanga and Westville.
Margaret regards herself as a “jack of all trades”, having been involved in selling, invoicing, demonstrating, deliveries, installing and generally taking care of almost everything at Hirsch’s for the past 41 years. She doesn’t have an office at any of the branches. However, before the pandemic she visited each of them every week – joining staff on the floor to get involved with customer queries, and enjoying every minute of it. “Keeping our customers happy and providing them with a unique, hands-on service has helped our business grow and we are continuously finding ways to improve on our service to them.” She says she is itching to get back on the floor to join her customers and staff when the time is right.
Her knack for empowering everyone involved with the company is inspiring. In 1994 Hirsch’s decided to empower their drivers, so the company sold their trucks to the drivers at a low price over an extended period. The ripple effect of this was that more than 20 delivery businesses have started up over the past 21 years, and these delivery businesses now employ more than 800 people.
With more than 2 000 people in their employ, Hirsch’s mostly invests in turning their staff into motivated employees with sound goals. Objectives that are encouraged, include investing in their own homes to live comfortably and providing a solid education for their children. Values that are embedded with the staff are honesty, integrity and loyalty.
As far as a recipe for success goes, there are intriguing points of difference in this family operation as the company has honed the concept of customer care to a unique level. It starts with building customer loyalty that made Hirsch’s a household name. The approach being that Hirsch’s is not just about shopping, they aim to add value to the shopping experience by hosting functions and demonstrations in store that revolve not only around products but empowering people. This is driven by embracing 21st century technology and social media platforms.
L-R: Richard, Margaret, Allan and Luci Hirsch
Customers are drawn to follow Margaret on their website and social media. On the website she provides entertaining and lifestyle sections on motivation, content for business women, a sound cloud and blogs on recipes, decor and fashion. These sections are not trying to sell anything, they merely add value with a wealth of useful content to be enjoyed by followers.
Before Covid-19, Hirsch’s stores ran active community involvement projects like networking sessions for local entrepreneurs, training sessions for domestic workers and regular cook-offs by children in store, or Margaret teaming up with celebrities for fun culinary experiences.
The networking programmes facilitate businesswomen and men to connect, share knowledge and support each other. Successful business people in the community or Margaret herself regularly do a talk on their business model, providing motivation and business tips useful to the audience. During Lockdown, Margaret has held these networking sessions in a virtual setting, and response has been exceptional.
During networking sessions wannabe entrepreneurs often ask Margaret about borrowing capital to start their business. She believes entrepreneurs should never borrow money to start a business and as she says, eventually they would need to pay back the money with interest. “Start slowly, use the money you have. Get what money you can, sell everything. And every cent you make, you plough back into the business.”
In the day-to-day business operations, Margaret savours the customer interaction. “What I love in our industry, is seeing two and sometimes three generations from the same family coming through to furnish their homes with us.”
There is also no short supply in social responsibility drives by this brand. Margaret has been involved in promoting the Girls With Dignity project to support young girls throughout the country who used to be absent from school while menstruating. Following extensive talks at schools, motivating girls to attend school, attendance has increased from 40% to 80% and their marks have also improved dramatically.
Another initiative is the Margaret Hirsch Women in Business Achiever of the Year Award. Business women in each of the areas where Hirsch’s operate are recognised for their achievements in the workplace. Margaret established the competition after she saw how well her business did and how winning many awards herself - gave her an edge over her competitors. “Winning these awards has been wonderful – both for Hirsch’s and for me personally, and I would like to see this happening to other women in business.” Empowering women and helping them to realize their true wealth is something that she thrives on.
An example is Anna Mhlanga, an aspiring baker who she met at her Meadowdale store several years ago.
Margaret told us Anna’s story…
“Anna is the wife of a preacher and she needed to find something that would help boost the family income. When she came to see me at the Hirsch Meadowdale branch, it was to get ideas on how to start a baking business. It was something that she was passionate about, but didn’t know how to go about building a business around it. I suggested that she start out making something she was comfortable with and selling. She started with cupcakes and before long she was getting large orders. She was also approached to make speciality cakes – wedding cakes in particular. She put herself on an icing course and then set out to make and sell the cakes. Before long she was tripling her profit and the orders kept coming in.”
“At one of our meetings she explained how much she enjoyed baking and had thought about starting up her own baking school. I agreed that it would be an excellent idea and together we put together a programme where she would hold lessons at one of the Hirsch branches that had a kitchen. This was in Centurion. Anna started with a small group of women and gradually the group grew. She passed on her knowledge of baking and icing, and charged the women a flat rate to attend the lessons. Although she continued to make speciality cakes, she found that she got so much pleasure out of teaching that she asked if she could do lessons at one of our other branches. When the ladies who attended the Centurion branch baking lessons graduated, I attended the graduation and was delighted to see that they had brought their children along to watch the ceremony and applaud their mothers for their achievements. It was also clear to me that they would all have a good grounding for becoming entrepreneurs themselves. The women who attended the course have all ended up with successful baking businesses of their own.”
“Anna took her baking business to our Brakpan store where she continued to teach baking skills to the local community. These women also graduated and have ended up running their own baking businesses. One, Abigail, holds regular classes at our Brakpan branch and has regular orders for her wedding cakes. Anna’s husband was transferred to Somerset West three years ago and we agreed that she continue with her lessons there. She had an influx of Zimbabwean women coming through for lessons, many of whom were destitute and had to support their families. They were determined to make the most of their lessons and become bread winners for their families. They have all done extremely well with their baking businesses and some have gone on to teach baking skills themselves. Others have gone the health route and devised healthy menus for families on a shoe string. Once again it has been hugely gratifying to see the reaction from the children of these women. All have seen how hard their mothers have worked and are on a path to achieve goals of being equally hard working and successful.”
Margaret has become a leading example to business women in Southern Africa – coming from a humble background, to co-founding and running the family’s multi billion rand appliance and electronic retail operation. She has been recognised with a multitude of business awards, including two Lifetime Achievement Awards in business and entrepreneurship. This leading businesswoman believes that entrepreneurs could make a difference in the future of the country.
Margaret says:
“I am passionate about business. I am passionate about South Africa, and I think we as a country need to stand strong. We live in a country of wealth and abundance and it’s up to us as entrepreneurs to ensure this country goes from strength to strength.”
